Following the biggest U.S. stock market sell-off of the year on Wednesday, asset managers and investment strategists are suggesting two strategies for portfolio protection; bitcoin and international markets.

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Alternatives to Investing in US Stocks

Wall Street saw the biggest sell-off in more than eight months on Wednesday. The market’s worst day of the year was largely due to uncertainty surrounding U.S. President Donald Trump. According to Reuters, reports that he “had tried to intervene in an investigation of alleged Russian meddling in last year’s U.S. presidential election, and that his aides had numerous undisclosed contacts with Russian officials, kept markets concerned over his ability to implement his economic agenda.”

Although U.S. stocks mostly rebounded on Thursday, “investors may be looking for new bets in a market with growing uncertainty,” CNBC reports, adding that:

Looking to international markets and finding refuge in bitcoin are two suggestions strategists are making.

Mark Tepper, President of Strategic Wealth Partners, warns against further U.S. market risks, telling CNBC that “it’s pretty obvious that political risk is shifting toward the U.S.” While acknowledging that U.S. markets have outperformed international markets over years, he now sees the trend reversing. While most investors are still overweight U.S. stocks, he noted that “global growth is so much stronger than U.S. growth.”

Hedge with Bitcoin

Boris Schlossberg, Managing Director of foreign exchange (FX) Strategy at BK Asset Management, believes bitcoin is a good hedge going forward. In an interview with CNBC on Wednesday, he said the digital currency is the “new gold.” He then pointed out the similarities between bitcoin and precious metal which is often considered a safe haven asset.

He said bitcoin is a suitable investment for investors wanting to protect their portfolios against further political risks, which he believes there may very well be. Bitcoin has had a 97 percent rally this year at press time, but he noted that its price is holding at very steady highs.

He further detailed when there is a big move in any type of investment instrument, “generally you’re going to have some continuation,” adding that:

It’s clearly signaling more demand [for bitcoin]. So I like that as a hedge play going forward

Schlossberg echoes Bobby Lee’s sentiment made in January in a different interview with CNBC. The CEO of the Chinese bitcoin exchange Btcc said, “when the existing money system has problems, people turn to bitcoin sort of like people used to go to gold in the old days.”

Do you think bitcoin is a good hedge against U.S. stock market risks? Let us know in the comments section below.